Notes to Accounts of Labelkraft Technologies Ltd.

Mar 31, 2025

2j. Provisions, Contingent assets & contingent liabilities

A provision is recognized when an enterprise has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present values and are determined based on the Management''s
estimate of the amount required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the Management''s
current estimates.

A contingent asset is neither recognised nor disclosed in the financial statements.

Contingent liabilities are not recognised in the financial statements. They are disclosed by way of notes to accounts.Provision is made if it becomes probable that an outflow
of future economic benefit will be required for an item previously dealt with as contingent liability.

^2k Operating cycle

Assets and liabilities are classified as current and non Current based on the operating cycle which has been estimated to be 12 months. All the assets and liabilities which are
expected to be realized and settled, within a period of 12 months from the date of balance sheet have been classified as current and other assets and liabilities are classified
as noncurrent.

2l. Operating Leases

Lease where the Lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating lease. Operating lease payments
are recognised as an expense in the Profit and Loss Account on a straight line basis.

2m. Earnings per share

Basic earnings/(loss) per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any
and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings/(loss) per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of
shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2n. Retirement and other employee benefits

i) Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss
for the period when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.

ii) Gratuity

Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method
made at the end of each financial period, Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss and are not
deferred.

A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products
or services and that is subject to risks and returns that are different from those of other business segments.

The entity has idenified two business segment basis the nature of products or servcies provided. The business segments comprise of Lables & ribbons and

Revenue and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable
to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are used
interchangeably amongst segments. Allocation of such assets and liabilities is not practicable and any forced allocation would not result in any meaningful
segregation. Hence assets and liabilities have not been identified to any of the reportable segments and are disclosed as unallocable.

Summarised segment information is as follows:

(ii) Security given for Term loans to Kotak Mahindra Bank (Loan 1)

Primary:

- Hypothecation of Current Assets of the Company
Collateral:

- Mortgage of various immovable properties held in the name of the Company ie "Site no.14/12,Sudhama
Nagar ,Jaya Chamarajendra Road Cross ,Bangalore-560002" owned by M/s Labelkraft Technologies Ltd ,the
same is collateral for WC exposure also.

- Mortgage of Movable Fixed Assets held in the name of the Company

Personal Guarantee:

Promoters

- Shraddha - Director

- Rashi Jain - Director

Corporate Guarantee:

- Solanki Enterprises

(iii) The Company has availed working capital loan & cash credit facility from banks (Loan 3 to 4)

The Company has availed Bank Overdraft from Karur Vysha Bank against the facility of Fixed deposit (Loan-3)

(iv) Secured term loans from Kotak Mahindra Bank are inclusive of current maturities.

(x) During the year no scheme of arrangements has been approved by the Competent Authority in terms of section 230 to 270 of the Companies Act 2013.

(xi) During the year the company has complied with section 2(87) of the Companies Act 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

(xii) During the year Section 135 of the Companies Act 2013 is not applicable for the Company.

(xiii) Pursuant to the notification issued by the Ministry of Corporate Affairs dated March 24, 2021, in respect of changes incorporated in Schedule III of the Companies Act, 2013, the figures for the
corresponding previous periods/year have been regrouped/reclassified wherever necessary to make them comparable.

Summary of significant accounting policies 1 to 2

The accompanying notes are integral part of the financial statements 3 to 38

For Singhi & Co, For and on behalf of the Board of Directors

Chartered Accountants LABELKRAFT TECHNOLOGIES LIMITED

FRN.3 02049E

Sd/- Sd/- Sd/-

CA. Vijay Jain Ranjeet Kumar Solanki Raashi Jain

Partner Managing Director Whole-time director

Membership No.:077508 DIN: 00922338 DIN: 09759926

UDIN:25077508BMOVZN2445 Bengaluru Bengaluru

Place:-Bengaluru Date: 22-05-2025 Date: 22-05-2025

Date: 22-05-2025

Sd/- Sd/-

Riddhi Doshi Shraddha

Whole- time Company Secretary Chief Financial officer

M No. A61478 DIN: 09759925

Bengaluru Bengaluru

Date: 22-05-2025 Date: 22-05-2025

---

Mar 31, 2024

2i. Provisions, Contingent assets & contingent liabilities

A provision is recognized when an enterprise has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present values and are determined based on the Management’s estimate of
the amount required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the Management’s current
estimates.

A contingent asset is neither recognised nor disclosed in the financial statements.

Contingent liabilities are not recognised in the financial statements. They are disclosed by way of notes to accounts.Provision is made if it becomes probable that an outflow of
future economic benefit will be required for an item previously dealt with as contingent liability.

2k. Operating cycle

Assets and liabilities are classified as current and non Current based on the operating cycle which has been estimated to be 12 months. All the assets and liabilities which are
expected to be realized and settled, within a period of 12 months from the date of balance sheet have been classified as current and other assets and liabilities are classified as
noncurrent.

2l. Operating Leases

Lease where the Lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating lease. Operating lease payments are
recognised as an expense in the Profit and Loss Account on a straight line basis.

2m. Earnings per share

Basic earnings/(loss) per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any and
attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings/(loss) per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2n. Retirement and other employee benefits

i) Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the
period when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.

ii) Gratuity

Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at
the end of each financial period

Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss and are not deferred.

30 Segment Reporting

A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or
service or a group of related products or services and that is subject to risks and returns that are different from those of
other business segments.

The entity has idenified two business segment basis the nature of products or servcies provided. The business segments
comprise of Lables & ribbons and Licences.

Revenue and expenses directly attributable to segments are reported under each reportable segment. All other expenses
which are not attributable or allocable to segments have been disclosed as unallocable expenses.

(ii) Security given for Term loans to Kotak Mahindra Bank (Loan 1)

Primary:

- Hypothecation of Current Assets of the Company
Collateral:

- Mortgage of various immovable properties held in the name of the Company ie "Site
no.14/12,Sudhama Nagar ,Jaya Chamarajendra Road Cross ,Bangalore-560002" owned by M/s
Labelkraft Technologies Ltd ,the same is collateral for WC exposure also.

- Mortgage of Movable Fixed Assets held in the name of the Company

Personal Guarantee:

Promoters

- Shraddha - Director

- Rashi Jain - Director

Corporate Guarantee:

- Solanki Enterprises

(iii) The Company has availed working capital loan & cash credit facility from banks (Loan 2 to 3)

The Company has availed Bank Overdraft from Karur Vysha Bank against the facility of FD (Loan-2)

(iv) Secured term loans from Kotak Mahindra Bank are inclusive of current maturities.

OTHER STATUTORY INFORMATION

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shal

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.

(viii) During the year, the Company has not surrendered or disclosed any income in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income
Tax Act, 1961). Accordingly, there are no transaction which are not recorded in the books of accounts.

(ix) During the year the Company has not availed any borrowings from banks or financial institutions on the basis of security of current assets.

(x) During the year no scheme of arrangements has been approved by the Competent Authority in terms of section 230 to 270 of the Companies Act 2013.

(xi) During the year the company has complied with section 2(87) of the Companies Act 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

(xii) During the year Section 135 of the Companies Act 2013 is not applicable for the Company.

For Singhi & Co, For and on behalf of the Board of Directors

Chartered Accountants
FRN.302049E

sd/- sd/- sd/-

CA. Vijay Jain Ranjeet Kumar Solanki Shraddha

Partner Managing Director Chief Financial officer

Membership No.:077508 DIN: 00922338 DIN: 09759925

UDIN: 24077508BKCRRR1334 Bengaluru Bengaluru

Bengaluru Date: 27th May 2024 Date: 27th May 2024

Date: 27th May 2024

sd/- sd/-

Raashi Jain Riddhi Doshi

Whole-time director Whole- time Company Secretary

DIN: 09759926 M No. A61478

Bengaluru Bengaluru

Date: 27th May 2024 Date: 27th May 2024